Correlation Between Tigo Energy and Sunworks
Can any of the company-specific risk be diversified away by investing in both Tigo Energy and Sunworks at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Tigo Energy and Sunworks into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tigo Energy and Sunworks, you can compare the effects of market volatilities on Tigo Energy and Sunworks and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Tigo Energy with a short position of Sunworks. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tigo Energy and Sunworks.
Diversification Opportunities for Tigo Energy and Sunworks
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tigo and Sunworks is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Tigo Energy and Sunworks in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunworks and Tigo Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Tigo Energy are associated (or correlated) with Sunworks. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunworks has no effect on the direction of Tigo Energy i.e., Tigo Energy and Sunworks go up and down completely randomly.
Pair Corralation between Tigo Energy and Sunworks
If you would invest 162.00 in Sunworks on August 31, 2024 and sell it today you would earn a total of 0.00 from holding Sunworks or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.35% |
| Values | Daily Returns |
Tigo Energy vs. Sunworks
Performance |
| Timeline |
| Tigo Energy |
| Sunworks |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Tigo Energy and Sunworks Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tigo Energy and Sunworks
The main advantage of trading using opposite Tigo Energy and Sunworks positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tigo Energy position performs unexpectedly, Sunworks can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Sunworks will offset losses from the drop in Sunworks' long position.| Tigo Energy vs. Vera Bradley | Tigo Energy vs. Citi Trends | Tigo Energy vs. Skechers USA | Tigo Energy vs. Cadence Design Systems |
| Sunworks vs. Sunrun Inc | Sunworks vs. Maxeon Solar Technologies | Sunworks vs. Canadian Solar | Sunworks vs. First Solar |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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